Presentation on theme: "Rolling it All Together: A Balanced Scorecard Approach"— Presentation transcript:

2 Presentation Agenda What is the Government Balanced Scorecard?What’s in it for Cities and Counties?What does a Real BSC Look Like?What are the Limitations of the BSC?What is the Future of the BSC?BSC Implementation Workshop tomorrow!

3 What is the Balanced Scorecard (BSC)?The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action.It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise.

4 Some Concepts in the Balanced ScorecardMultiple PerspectivesBalanceFeedback of measurements“Cascading” ScorecardsCause-Effect FrameworkStrategic Mapping

5 Four Perspectives of the Balanced ScorecardObjectiveMeasureTargetInitiativeBudgetFinancialStrategyCustomers/CitizensMeasureTargetInitiativeObjectiveCustomersMeasureTargetInitiativeObjectiveInternal BusinessProcessesMeasureTargetInitiativeObjectiveLearning & GrowthSource: Kaplan and Norton

19 What are the BSC’s Benefits for Local Governments?BSC Places the Whole Organization in a Learning ProcessEnables More Rational Budget DecisionsFacilitates Performance ImprovementsImproves Communication to StakeholdersProvides Data for Benchmarking

20 BSC Benefits: 1. LearningBSC Places the Whole Organization in a Learning ProcessAligns everyone to strategy in a single frameworkBSC improves itself over time:Selection of initiatives and resource allocationCause-effect hypothesesMeasurement process

22 BSC Benefits: 3. Facilitates ImprovementsBSC Raises visibility of what’s going onIdentifies what most needs to be changedHelps to identify best practicesBSC enables more opportunities for Innovation

24 BSC Benefits: 5. BenchmarkingBenchmarking Project:Identify ProcessEstablish PartnershipSite VisitData AnalysisImplementation PlanOrg. AProcessOrg. BProcessPerformance measurement data collected for the BSC can also beused as a basis of comparison with data from other organizations.

25 Why use the Balanced Scorecard in Government?“Why should you as a government leader try to achievea balanced set of performance measures? …Because you need to know what your customer’sexpectations are and what your employee needs tohave to meet these expectations. Because you cannotachieve your stated objectives without taking thoseexpectations into account. More importantly, becauseit works, as can be seen from the success of ourpartners.”-- National Partnership for Reinventing Government, 1999

28 Customers & Stakeholders Organization CapacityKey QuestionsMissionWhat is our mission? What services and programs are required and need to be provided?Customers/CitizensMeasureTargetInitiativeObjectiveCustomers & StakeholdersHow do we create value? What benefits do we need to provide?StrategyObjectiveMeasureTargetInitiativeBudgetFinancialMeasureTargetInitiativeObjectiveLearning & GrowthEmployees&Organization CapacityTo prudently manage public resources, how should we allocate funds and control costs?MeasureTargetInitiativeInternal Business ProcessObjectiveInternal BusinessProcessesHow will we sustain our ability to change and improve?To satisfy taxpayers, elected officials, regulators, and other stakeholders, at what business processes must we excel?

33 Common BSC Implementation ChallengesMission, vision and strategies poorly defined or understood, and not actionableStrategies and goals not linked to performance drivers, outcome measures, individual goals, and incentivesBudget and planning processes that are not linkedTreating performance measures as an “end”, rather than a “means”Performance targets set too high or too lowFeedback that is tactical, rather than strategicLack of meaningful employee involvement

34 Limitations of Government BSCRequires High Level of Organizational CommitmentChange management issues“What’s in it for me?”Takes sustained effort to implement fullyMay create fearRaises visibility and accountabilityMay lead to loss of dataMeasurements don’t solve anythingMust be accompanied by initiativesGovt. BSC Implementations are scarceFew mature implementationsLimited data publishedLack of standardized metrics

36 ConclusionsBSC provides a framework needed for strategic alignment and org. learning.Names may change, but some BSC features will continue:Performance measurementsResults-based planning and managementIncreased use of information technologyIncreased sharing of data for benchmarkingBSC is not a “flavor of the month” but an evolving management concept.